A wave of Chinese companies has promised to boost buying of their own shares as a US$1.6 trillion slump in the nation’s stock market deepens.
At least 101 firms said that major shareholders and executives plan to increase their stakes or have bought shares, according to exchange filings on Wednesday and yesterday.
Stock prices for the companies dropped by an average 7 percent on Tuesday, when the Shanghai benchmark plunged to a two-year low amid concern about worsening trade tensions with the US.
The move is reminiscent of steps taken by Chinese firms during 2015, when executives scrambled to shore up confidence as a stock bubble burst.
Officials are weighing in: After Tuesday’s tumble, People’s Bank of China Governor Yi Gang (易綱) pledged to use monetary policy comprehensively and maintain liquidity at an appropriate and stable level, while state media also tried to reassure investors.
“The purchases are more of a symbolic move to boost share prices,” said Guo Feng, the Shanghai-based head of the wealth management department at Northeast Securities Co (北方證券). “It’s typical for firms to come up with such plans after market tumbles, but they hadn’t always worked.”
Property developer Guangzhou Yuetai Group Co’s (廣州粵泰集團) chairman plans to buy up to 1 billion yuan (US$154 million) of the company’s shares over the next nine months, starting yesterday, it said in a statement yesterday.
The stock plunged by the 10 percent daily limit for a third day.
Guangzhou Haige Communications Group Inc (廣州海格通信集團) on Wednesday said that its controlling shareholder plans to spend no more than 1 billion yuan buying as much as 5 percent of total shares before Aug. 10.
Of the 101 companies announcing buybacks, 61 are listed in Shenzhen, where the benchmark equity gauge has slumped 20 percent since its January high.
That includes a 1.6 percent drop yesterday.
The Shanghai Composite closed up just 0.6 percent.
A weaker yuan is adding to jitters, with the currency losing 1.6 percent over the past week.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
READY TO BUY: Shortly after Nvidia announced the approval, Chinese firms scrambled to order the H20 GPUs, which the company must send to the US government for approval Nvidia Corp chief executive officer Jensen Huang (黃仁勳) late on Monday said the technology giant has won approval from US President Donald Trump’s administration to sell its advanced H20 graphics processing units (GPUs) used to develop artificial intelligence (AI) to China. The news came in a company blog post late on Monday and Huang also spoke about the coup on China’s state-run China Global Television Network in remarks shown on X. “The US government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon,” the post said. “Today, I’m announcing that the US government has approved for us
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